Cashless Society
A Cashless Society is one that only uses digital payment methods (no physical cash)
The world is slowly moving towards being cashless:
- Sweden expects to be 100% cashless by 2023 (only 13% cash transactions in 2018)
- Digital payments have been growing by 10%/year since 2012 (2018)
- India has plans to go cashless
Cashless Benefits to Financial Institutions
- Save costs (handling cash is expensive)
- Opportunity to generate fees from electronic transfers
- More deposits (all $ within the system in deposit accounts)
- Less people in branches to deal with cash = less expensve
- Lower compliance costs
Cashless Benefits to Governments
- Every transaction can be traceable - reduce crime
- More tax revenue and less tax evasion
- Better data
- More control over the economy
- Faster & more efficient financial system